Cramer's Common Sense Approach to Picking Stocks

"If you want to try to make money instead of sitting on the sidelines," Cramer said Wednesday. "You have to recognize that sometimes this is merely a game of common sense."

Take John Deere , for example. The farming equipment manufacturer is being helped by the farming boom. With record prices for crops, like corn, soybeans and wheat, farmers are trying to get more out of their land. In doing so, they're buying new equipment from the Moline, Ill.-based company. Not surprisingly then, Deere reported robust quarterly results ahead of Wednesday's opening bell. Following the earnings announcement, the stock went on to rally $2.24.

The Wall Street Journal, however, cautioned readers who are considering buying DE. In an article entitled, "Earnings Call Puts Deere In Headlights," Kelly Evans warns of rising raw material costs and how crop prices could crash. Cramer complained the article has an agenda, which is to prevent you from making money on Deere.

As with every stock, investing comes with risks, he said. John Deere is no different and the article simply laid out the opportunity costs.

"There's no penalty to writing that kind of story," Cramer said. "If the stock goes up, oops! But if it goes down, you look like a genius."

What investors should think about, he said, is the cost of not investing at all. Cramer recommends taking a look at Deere and other companies that can pass on higher raw costs and continue to charge full price for its merchandise. When it comes to copper and coal, Joy Global and Bucyrus International have tremendous pricing power. Meanwhile, oil companies need drilling rigs so badly, National Oilwell Varco is able to raise its prices with impunity.